Swing trading, a popular trading strategy, allows traders to capture shorter-term price movements regardless of the market trends or not. While swing trading can be profitable during periods of stability, it becomes even more crucial during times of volatility. In this article, we will explore the concept of statistical volatility and how incorporating the NeverLossTrading trade repair method can increase the chances of winning trades, even in turbulent market conditions.
Read on and watch the video!
Understanding Statistical Volatility:
Statistical volatility measures the magnitude of price fluctuations in a financial instrument over a specific period. On the one hand, it gives traders insights into market uncertainty and risk. On the other hand, it provides a basis for expected price move potentials.
During higher volatility, prices can experience rapid and significant swings, presenting opportunities and challenges for swing traders. We developed the SPU – NLT Speed Unit – as a measure of volatility; it defines when a price move starts and where it most likely ends by countermeasures coming into play.
SPU as a Measure of Statistical Volatility
Considering that price change results from a change in supply and demand and that the crowd follows the leaders, we specify our price move model.
NeverLossTrading Price Move Model
We use this model to specify entries, exits and stops. Our systems help to find high-probability price turning points with specified price thresholds: Buy > and Sell <, and we only accept a transaction when the specified price threshold will be reached in the price movement of the next candle; else, no trade.
Even so, our indicators provide high-probability trade setups, there will be a certain number of trades that go wrong, and we want to show you how those can be repaired to reduce the risk or loss per trade or even turn losers into winners.
The NeverLossTrading Trade Repair Method:
The NeverLossTrading trade repair method is a unique approach that aims to turn losing trades into winners without additional investment when you trade stocks: Additional capital might be needed on stock options trades, Futures, and FOREX trade repairs. Instead of accepting a stop loss and exiting a trade prematurely, this method allows traders to add to their positions strategically and increase the potential for profitability. Upfront, you will not turn every losing trade into a winner, but check with us what the trade repair can do to your profitability:
Profit Impact of Trade Repairs
The table shows when you manage to exit losing trades at breakeven, the expectation value of your profitability increases by 206% or more than double. If you can cut losers in half by protecting your trades, your profit expectation increases by 153%. Hence, a valuable piece of knowledge only a few traders possess, and we teach the details in our trading programs. However, the model has one consideration: you must act at high-probability setups with a > 65% likelihood to forecast a price move from entry to exit.
How Does It Work?
When a swing trade initially goes against you, instead of closing the position at a loss, the NeverLossTrading method suggests adjusting the trade by adding options positions: This is done based on predefined rules and techniques that take advantage of market conditions and price patterns.
Our stock trade repair method does not require additional capital. You do not increase your position size by incorporating options positions to offset potential losses.
The Never Stop Loss Trading idea lead to our brand name. Our method allows you to stay in the trade and benefit from subsequent price movements that align with the original trade thesis, and here are the key advantages of the concept:
- You enhanced the Win Rate: By utilizing the trade repair method, swing traders have the potential to turn losing trades into winners, which can significantly improve their overall win rate and profitability, as our table showed.
- In addition, the trade repair method also allows traders to leverage their current position without requiring additional capital, increasing capital efficiency and maximizing the potential for returns.
- Instead of being forced to accept a stop loss, the trade repair method allows traders to adjust their positions. This adaptability enables traders to stay in trades longer and take advantage of favorable price movements.
- Rather than being emotionally affected by a losing trade, the trade repair method offers a structured approach, helping traders maintain discipline, make objective decisions, and avoid impulsive actions.
While the NeverLossTrading trade repair method offers the potential for turning losing trades into winners, it’s essential to have a well-defined risk management plan in place. Traders must establish specific rules for adjusting positions and determining when to exit trades if they continue to move against them.
Swing trading during periods of volatility can be both challenging and rewarding. By understanding statistical volatility and incorporating the NeverLossTrading trade repair method, swing traders can increase their chances of winning trades and capitalize on market fluctuations. This method provides a unique opportunity to adjust positions strategically and potentially turn losing trades into profitable ones, all while maintaining capital efficiency and emotional control. Remember, thorough research, proper risk management, and a disciplined approach are crucial for successful swing trading during times of volatility.
Now that you know the base theory, let us share examples:
BIDU Trade Repair
Chart Analysis
Our chart combines NLT Top-Line indications with the NLT Price Breakout concept, and we get indications for strong directional price moves when the price leaves the cyan channel together with a buy or sell indication:
- On 5/26/2023, BIDU showed an NLT Top-Line signal: Buy > $126.40. The target was at $135.50 and a stop at $120.50
- A long position was opened on May 30, 2023
- On 5/31/23, the price development of BIDU came to the stop-price level, and instead of exiting the trade, it was repaired
- On 6/1/2023, the price broke out of the cyan channel, the repair position was closed, and the stock price came to its original target on 6/6/2023
Without the trade repair method, this would have been a losing trade; with it, it turned into a winning trade that closed at target.
We recorded a similar price movement for Apple.
AAPL Trade Repair
Chart Analysis
- On 5/18/2023, AAPL showed an NLT Top-Line signal: Buy > $175.24. The target was at $179.50 and a stop at $175.10
- A long position was opened on May 19, 2023
- On 5/23/23, the price development of AAPL came to the stop-price level, and instead of exiting the trade, the NLT Trade Repair Methos was applied
- On 5/26/2023, the price broke out of the cyan channel, the repair position was closed, and the stock price came to its original target on 6/1/2023
To experience how our systems work with live data:
contact@NeverLossTrading.com Subj.: Demo
NeverLossTrading is a trading education and software company that aims to help traders improve their performance and profitability in the financial markets by:
- Personalized Coaching: in one-on-one sessions, you learn customized trading strategies that fit your unique needs and goals. This personalized approach can help traders better understand the markets and make more informed trading decisions.
- Trading Software: NeverLossTrading offers proprietary software that provides real-time market analysis and trading signals. Our indicators are designed to help traders automate their trading decisions and execute trades with greater accuracy and efficiency.
- Comprehensive Training: We provide extensive training and education materials to help traders learn the fundamentals of trading and develop the skills and knowledge necessary to succeed in the markets.
BRK/B without Trade Repair
Most of our indications come to their system-defined target. The BRK/B example showed a short and a long opportunity. The short trade closed at target, and the long opportunity was still open when writing this article. By combining strong price turning point potentials with the Cyan Price Channel Breakout Strategy, we can win around 70%: This still means that we expect 30% of the trades to be wrong. However, the NLT Trade Repair Concept will teach you how to take countermeasures and by thos increase your profitability.
Next, we show a real-life trade repair example of an NLT client who held a strangle on AAPL and applied a repair based on NLT chart indications by adding stock roll in the position up and forward, starting in May of 2023
AMZN Position before the Repair
AMZN Position Risk Profile, May 23, 2023
The trade setup had two breakeven points: $105 and $125. If the price of AMZN stayed between those brackets, the trade would give a $3,000 expected gain (18% return on capital).
However, our indicators projected AMZN to forecast a >$130 price in demand, leading to a potential loss of $3,000 in the open position.
Most of our trade repairs do not require additional capital to repair a position; this trade did. Applying the NLT Trade Repair method, the position was changed to the following:
AMZN Position after the Repair
The original position had a purchase power effect of $17,000. Adding stock and rolling the options resulted in a net capital requirement of $27,000 ($36,000 initial margin, minus about $9,000 premium collected): with an expected 30% return on capital engaged if AMZN stays above $120, else another repair.
AMZN Position Risk Profile, after the NLT TradeRepair
As long as AMZN stays above $111, the position is profitable, and when it stays above $120, an $8,040 profit will be obtained.
A considerable difference in outlook and position holdings, and we share the details of what to do, how and when in our teaching and coaching sessions.
The case we shared started with an options position, but the usual repair case starts with a stock position. Trade repairs for FUTURES and FOREX are also possible but follow a different action plan.
A lot is possible; skill and knowledge make a difference.
To succeed in trading, you best work with an experienced coach. Our #1 competitive advantage is the support and customer service we offer. Veteran traders have been through more ups and downs than you can imagine. So, experienced pros have probably experienced whatever you’re going through.
If you are ready to make a difference in your trading: We are happy to share our experiences and help you build your trading business. Trading is not a typical career, and you best learn from those who are long-term in this business to cope with the rollercoaster of the financial markets. We are here to help and provide feedback on what you might be doing right or wrong. Strive for improved trading results, and we will determine which of our systems suits you best. The markets changed, and if you do not change your trading strategies with them, it can be a very costly undertaking. The markets changed, and it can be expensive if you do not change your trading strategies with them. However, you can make a difference with the right skills and tools! Hence, take trading seriously, build the skills, and acquire the tools needed. Trading success has a structure you can learn and follow.
If you like to receive a PDF copy of this article:
contact@NeverLossTrading.com Subj.: Trade Repair PDF
Good trading,
Thomas Barmann (inventor and founder of NeverLossTrading)
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